ECON 2030; Exam 3 (Roussel) QUESTIONS AND
ANSWERS | LATEST UPDATE | INSANT
DOWNLOAD
Save
Terms in this set (75)
Suppose the US economy is increase, no change
operating at full engagement. An
increase in government spending will
cause ___ in aggregate price level in
the short run and ___ in real GDP in the
long run, everything else held
constant.
When borrowing, you want interest low, high
rates ___ and inflation rates ___.
When lending, you want interest rates high, low
___ and inflation rates ___.
Suppose Olivia, a US citizen living in decrease, no change
Chicago, purchases rose oil
produced in Bulgaria. Everything
else held constant, this purchase will
case ___ in the net exports of the US
and ___ in US GDP.
The term "business cycle" refers to short-term fluctuations in economic growths
the:
,Everything else held constant, an cyclical
across-the-board decrease in federal
income tax rates will be most
effective in combating ___
unemployment.
Suppose the US economy is increase, no change
operating at full employment. A
negative supply shock will cause ___
in the unemployment rate in the short
run and ___ in the aggregate price
level in the long run, everything else
held constant.
Suppose in 2008 David's Desk Co. $100,000
purchased $300,000 of new
machinery and equipment. Suppose
further that his inventory at the
beginning of 2008 was $500,000
worth of desks and his inventory at
the end of 2008 was $300,000 worth
of desks. Everything else held
constant, David's total equipment
investment contribution to GDP from
his activities, as calculated by the
expenditure approach, was equal to
___ in 2008.
, Suppose the US economy is decrease, increase
operating at full employment.
Suppose further that businesses
expect the aggregate price level to
increase in the future.
Everything else held constant, this
change in expectations will cause ___
in real GDP and ___ in the
unemployment rate in the short run.
The largest expenditure component consumption
of US GDP is ___.
Suppose the US economy is increase, increase
operating at full employment. A
decrease in the interest rates by the
Federal Reserve will cause ___ in real
GDP in the short
run and ___ in the aggregate price
level in the long run, everything else
held constant.
The existence of discouraged not in labor force, understates
workers, who are officially counted
as ___, will lead to an officially
calculated unemployment rate with
___ the true problem of
unemployment.
Formula for real interest rate real interest rate = nominal - inflation rate
ANSWERS | LATEST UPDATE | INSANT
DOWNLOAD
Save
Terms in this set (75)
Suppose the US economy is increase, no change
operating at full engagement. An
increase in government spending will
cause ___ in aggregate price level in
the short run and ___ in real GDP in the
long run, everything else held
constant.
When borrowing, you want interest low, high
rates ___ and inflation rates ___.
When lending, you want interest rates high, low
___ and inflation rates ___.
Suppose Olivia, a US citizen living in decrease, no change
Chicago, purchases rose oil
produced in Bulgaria. Everything
else held constant, this purchase will
case ___ in the net exports of the US
and ___ in US GDP.
The term "business cycle" refers to short-term fluctuations in economic growths
the:
,Everything else held constant, an cyclical
across-the-board decrease in federal
income tax rates will be most
effective in combating ___
unemployment.
Suppose the US economy is increase, no change
operating at full employment. A
negative supply shock will cause ___
in the unemployment rate in the short
run and ___ in the aggregate price
level in the long run, everything else
held constant.
Suppose in 2008 David's Desk Co. $100,000
purchased $300,000 of new
machinery and equipment. Suppose
further that his inventory at the
beginning of 2008 was $500,000
worth of desks and his inventory at
the end of 2008 was $300,000 worth
of desks. Everything else held
constant, David's total equipment
investment contribution to GDP from
his activities, as calculated by the
expenditure approach, was equal to
___ in 2008.
, Suppose the US economy is decrease, increase
operating at full employment.
Suppose further that businesses
expect the aggregate price level to
increase in the future.
Everything else held constant, this
change in expectations will cause ___
in real GDP and ___ in the
unemployment rate in the short run.
The largest expenditure component consumption
of US GDP is ___.
Suppose the US economy is increase, increase
operating at full employment. A
decrease in the interest rates by the
Federal Reserve will cause ___ in real
GDP in the short
run and ___ in the aggregate price
level in the long run, everything else
held constant.
The existence of discouraged not in labor force, understates
workers, who are officially counted
as ___, will lead to an officially
calculated unemployment rate with
___ the true problem of
unemployment.
Formula for real interest rate real interest rate = nominal - inflation rate
